This study addresses issues related to land price increase, and clarifies these problems in terms of the causes and effects of land price increases. It also reviews the present land policy, and suggests measures for its improvement.
In the process of accommodating citizens and industry—now concentrated in urban areas due to industrialization and urbanization—land utility has increased, and consequently land prices have risen, which has caused difficulty in finding reasonably-priced lots for the construction of factories and housing, as well as many complaints from consumers. In order to stabilize land prices, the government should relax regulations and promote land development and access. The present land policy is based on the hypothesis that land speculation is the fundamental cause of all problems relating to land, including price rises. However, considering the difficulty in defining land speculation, inappropriate regulations on landowners cause problems of inequality. Some critics argue that speculation is not a cause, but a result (or process), of land price increases. However, land speculation is the major cause of contemporary land price increases. The present land policy is based on the firm belief that land price increase causes housing problems, while shrinking economic activities and land speculation becomes an undesirable means of capital formation. In order to improve land policy, it is important to improve land utility and efficiency by relaxation of the tax system and regulations regarding land use.
Also, the policy for artificial land speculation control, which distorts land taxation, should be abolished and the rigidity of tax administration should be reinforced. This is because serious social conflicts can arise when government policy cannot solve problems related to profit distribution generated by land.
토지제도개혁의 예상효과와 정책방향(The expected effect of land system reform and policy direction)
|Series Title; No||정책연구시리즈 / 91-01|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|
|Holding||KDI; KDI School|